New Delhi, Feb 1 (KNN) To boost the diamond and jewellery industry, Finance Minister Nirmala Sitharaman has announced reduction of import duty by 5 per cent on cut and polished diamonds and gemstones.

Currently the import duty on cut and polished diamonds and gemstones is 7.5 per cent.

The Finance Minister also said that a simplified regulatory framework will be implemented by June 2023 to facilitate export of jewellery through e-commerce.

Further the customs duty on imitation jewellery is being prescribed in a manner that a duty of at least Rs 400 per kg is paid on its import, she added.

As of February 2021, India’s gold and diamond trade contributed 7.5 per cent to India’s Gross Domestic Product (GDP) and 14 per cent to India’s total merchandise exports. 

The gem and jewellery sector is likely to employ 8.23 million persons by 2022, from 5 million in 2020.